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Trade and Competitiveness in Argentina, Brazil and Chile Not as Easy as A‐B‐C: The Dynamics of Foreign Direct Investment and A‐B‐C Competitiveness


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Argentina, Brazil and Chile (A‐B‐C) have attracted substantial amounts of FDI, but this, in contrast to Mexico, has had a limited impact on trade specialisation. In A‐B‐C most foreign investments were directed to primary good sectors and non‐tradable infrastructure services. There was a surge in FDI inflows in the second half of the 1990s, mainly related to privatisations. There has been relatively few technologysharing by local firms, although some supply linkages have been created, as documented by case studies both in the non‐tradable (e.g. retail trade) and tradable (e.g. mining) sectors. Similarly, FDI has contributed somewhat to institutional strengthening. This chapter ...
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Document Type: Review Article

Publication date: November 1, 2004

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